Frank Li

The Case for High Sulfur Coal Stocks (ARLP, BTU, CNX, FCL, MEE)

Notes from the Ira Sohn dinner in May 2007 on coal stocks. The notes were taken in real time, and may contain transcription errors:

<blockquote>
<b> Wilbur Ross, Jr. - WL Ross &amp; Co.</b>

- 33% decline in the price of coal in 7 months.
- Sudden unanticipated drop in demand in early 2006 – mild weather.
- Exacerbated by marginally cheaper Nat Gas.
- Utility industry inventories grew while production costs grew.
- Difficult geological conditions increased safety measures.
- Market coming back into balance.
- Lower production and improving utility demand.
- EIA forecasting 1.4% rise in demand production declining by 3% in 2007.
- Long Term futures market is trending higher.
- Build out of scrubbers by eastern utilities favor Appalachian coal over Powder River basin.
- Industry consolidation.
- EIA forecasting 41% growth of electricity use by 2030, Coals portion will increase from 50 to 57%.
- For nuclear to sustain its 20% market share 35-40 new nuclear plants would need to be built.
- Electric utility demand has only decreased 3 times in the 35 (?)years
- Coal very cost competitive.

Coal powered electric plants to be built in the next few years:
2007-3
2008-5
2009-25
2010-15

<blockquote>

Jim Cramer's Mad Money Lightning Round Picks, May 11

How does this fit with what Cramer said about BBI in Jim Cramer' s Mad Money In-Depth Stock Picks, Feb. 23: "Cramer says investors should sell BBI before Tuesday and buy some back after a selloff"???

Well, if you look at the chart the sell-off seems to have happened.

In fact, it's well documented that Cramer's picks aren't any good, and you guys have even carried articles about this on your own web site:

Cramer Podcaster: Jim's Picks Underperform

And even more damning:

Can You Make Money From Jim Cramer's Picks?

I don't understand why you keep publishing Cramer's stuff. You should link to these articles as a health warning in every article about him.